Credit Rating Agency (CRA), DataPro, has assigned FBNQuest Asset Management Limited a long-term rating of ‘A+’ with a stable outlook for 2023/2024.
The agency, in its latest report, explained that the firm, when assessed on its standards, shows excellent financial strength, profitability and liquidity profile.
The rating agency said as of the financial year-end 2022, the firm’s profits ploughed back into the business accumulated to N5 billion.
According to DataPro, consequently, overall equity was strengthened by 22 per cent as against the prior year at 21 per cent.
It stated that considerations for the rating assigned include the company’s profitability, investments, liquidity, asset management, capital adequacy, corporate governance and risk management as well as risk factors.
The firm’s earnings, DataPro said, were derived from portfolio management fees from a diverse range of portfolios, funds and investment solutions.
It said the company invested in various financial assets measured at Fair Value through Profit or Loss (FVTPL), Amortized Cost and Fair Value through Other Comprehensive Income (FVTOCI).
The value of the investments, it said was N5.7 billion, representing a 28 per cent growth during the year.
Financial assets at amortised cost accounted for the largest portion of the total investments, which represented 64 per cent (2022) of the financial assets and grew by 96 per cent.
It stated that ‘A+’ indicates low risk, which shows very good financial strength, operating performance and business profile when compared to the standard established by DataPro.